The U.S. Treasury stepped into the foreign exchange market alongside Japan's government on Aug. 2-3, in what counts as Washington's first coordinated intervention in the yen since 2011. Treasury Secretary Bessent committed to buying $5 billion to $10 billion of yen, according to CryptoBriefing. The intervention followed the yen's slide to 162.80 per dollar, a multi-year low. Japan's central bank has already lifted its benchmark interest rate to 1%, a 31-year high, and markets expect another rate increase in September. Analysts say Japan's selling of U.S. Treasuries could push yields up, potentially spilling into bitcoin and other risk assets.
The U.S. Treasury has joined Japan in a coordinated currency intervention for the first time since 2011, with Treasury Secretary Bessent pledging to buy between $5 billion and $10 billion of yen.
The operation took place on Aug. 2-3, with the U.S. Treasury acting alongside Japan's government, according to CryptoBriefing. The yen had fallen to 162.80 against the dollar, a multi-year low, before the intervention.
The Bank of Japan has already raised its benchmark rate to 1% in 2026, the highest in 31 years, and market participants expect another hike in September.
Analysts point out that Japan's selling of U.S. Treasuries could push Treasury yields higher, with potential knock-on effects on bitcoin and other risk assets.
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